to Mr. Fish.
Lima, Peru , November 25, 1873. (Received December 18.)
Sir: For some time past grave apprehensions of public disasters have prevailed in this community. It was feared that the credit of Peru would be dishonored by a failure to pay the accruing interest due on the 1st day of January next on the public bonds which had been disposed of by the financial agent of the Peruvian government, and it was seriously feared that the failure to furnish the required funds for the prosecution of the work on numerous railroads, now being built by contractors with the government of Peru, would arrest their construction, and thereby leave unemployed thousands of laborers. These apprehensions had their origin in a difference of opinion between those who have in charge the government of Peru and Messers Dreyfus Brothers & Co. as to the obligation which were imposed on that firm under a contract with the administration of the late President Balta, which gave to Dreyfus Hermunes & Co. an exclusive right to ship and sell in Europe the guano of the Peruvian government, and required them to pay out of the proceeds of such sales the interest on the bonds of Peru as it accrued and to furnish funds for the prosecution of the public works. These difficulties have now fortunately passed away. The Peruvian government and their financial agents, Dreyfus Brothers & Co., have come to a right understanding. The interest on the Peruvian bonds will be punctually paid and the public improvements will progress.
I am, &c,